Marketplace lender Blackmoon has announced a major foray into the cryptocurrency space, as it unveiled details of an ethereum platform specifically designed to facilitate investment in ‘tokenized investment vehicles’, or TIVs.
Dubbed Blackmoon Crypto, the platform has been designed to enable asset managers who already hold the required verifications to build and manage funds based around digital currencies like bitcoin and ether, assuring legal compliance through their system.
The marketplace lender, which already enjoys over $100 million in deal volume, has attracted $2.5 million in funding towards achieving its objectives, which aims to make Blackmoon Crypto one of the biggest players in its space.
The majority of their business lies in commercial lending, a market some way removed from cryptocurrency funds and investment. However, according to the group’s CEO Oleg Seydak, the services are more complementary than they may at first appear.
"The main idea of Blackmoon Crypto is provide a legal and technical framework for asset managers to create and continuously manage tokenized investment funds. Blackmoon will issue crypto tokens that will be able to distributed among investors in a new vehicle. At the same time, we'll provide the legal framework to effectively incorporate as a legal entity.”
Already operational across 9 different countries, the company has offices spanning New York, Cyprus, Singapore, where the company is incorporated, and elsewhere. Today, the company is operationally based in Russia, which creates interesting issues around regulation.
Russian authorities have so far been receptive to blockchain projects and developments, despite initial strong opposition, which some had feared would lead to a clamp down on development activity in the space.
However, their approach has not been uniformly adopted by governments and regulators worldwide, and there still remain some significant challenges for companies looking to develop platforms of this kind in a legally compliant way.
Recent guidance from the SEC in the US suggested that tokens should be considered as securities for the purposes of legal oversight and regulation, and as a result, Blackmoon has ruled out working with US investors for the time being.
However, the company has announced they will be applying for a broker dealer license within the next year, which would grant them the relevant permission to ultimately extend the new service to US markets.
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Odds Shark Staff Fri, Apr 29, 3:00pmBitcoin